While large companies often pay “go away” money to people who bring personal injury lawsuits to quickly settle the case, it’s not so easy for smaller businesses. A costly personal injury lawsuit can devastate a company financially. As insurance rates increase, some businesses can’t afford to pay for the kind of coverage that would protect them in the case of a serious injury for which they’re found responsible.
For many types of businesses where those who use their services or products face some risk of injury (like fitness-related businesses, helicopter tour companies, escape rooms, bike and scooter rental services), having customers sign a liability waiver upfront can offer protection when their own negligence or actions are to blame for their injury. These waivers also require the customer to stipulate that they understand the potential risks they’re accepting.
A liability waiver is never something a business owner should just download from a website. It needs to be unique to the business and the specific risks inherent in its products or services. Further, it needs to be legally sound and as airtight as possible. Otherwise, it could be unenforceable and basically useless.
Requirements of an enforceable liability waiver
Many business owners don’t consider factors that could let someone who says a business’s actions or negligence were responsible for their injuries successfully claim they didn’t provide informed consent. This is particularly true when so many waivers are now presented to a customer in a digital format.
For example, a liability waiver needs to be
- In language that’s easy to understand (as opposed to “legalese”)
- In a size and font that’s readable
- Short enough to be read completely before signing
Further, it’s best if a waiver is separate from any other document a customer may be provided and/or required to sign. It should have to be acknowledged and signed on its own.
The waiver should also be specific enough about the potential risks that a customer understands what risks they’re accepting. This can sometimes be challenging to do if a business involves an “experience” like a murder mystery night or a haunted house. However, there are ways to do it.
The best way to help ensure that your business has a legally sound, enforceable liability waiver is to have experienced legal guidance in writing it. This guidance can also help you if you find yourself facing a liability claim.